MFE being quoted

[It will be fine]

And those costs will only increase in the years to come as $228 million was paid just to California. There will be more states to settle with.

At this point every state that has flipped to ISP has already seen their lawsuits. Most of them aren't class action and are settled out of court so you won't get these big press release type settlements. These costs to fedex will not continue to increase, quite the opposite. There are little to no victims in the ISP model. Businessmen are not suing to get back taxes when their business are worth hundreds of thousands of dollars.

 

[MAKAVELI]

At this point every state that has flipped to ISP has already seen their lawsuits. Most of them aren't class action and are settled out of court so you won't get these big press release type settlements. These costs to fedex will not continue to increase, quite the opposite. There are little to no victims in the ISP model. Businessmen are not suing to get back taxes when their business are worth hundreds of thousands of dollars.

Exactly how many states have went isp? And exactly how many of those did FedEx settle?

 

[MAKAVELI]

http://www.washingtonpost.com/news/...ve-the-business-model-that-saved-it-millions/


It also seems that the Kansas decision will open a whole new can of worms for FedEx and the ISP model. This isn't over by a long shot.
http://www.insurancejournal.com/news/midwest/2015/07/17/375590.htm

 

[MAKAVELI]

https://wagehourdefense.wordpress.com/
As promised earlier this summer, on July 15, 2015, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued an “Administrator’s Interpretation” (AI) regarding when individuals are misclassified as independent contractors under the Fair Labor Standards Act (FLSA). The AI sends a signal to employers that the WHD has set a demanding standard for establishing when an individual is properly classified as an independent contractor and indicates that the agency views the issue as an enforcement priority. The AI states that, in the view of the WHD, “most workers are employees under the FLSA’s broad definitions.”

As background, unlike regulations, AIs are not subject to the rulemaking process such as that which is now underway for the proposed amendments to the white collar overtime rules. Rather, the AI provides the WHD’s view of the law, and that view is very unfriendly to those attempting to classify workers as independent contractors. In media interviews this week, the WHD’s Administrator David Weil stated that the AI was designed to give employer’s “fair notice” that they will run into the agency’s crosshairs if they misclassify individuals.

 

[bbsam]

http://www.washingtonpost.com/news/...ve-the-business-model-that-saved-it-millions/


It also seems that the Kansas decision will open a whole new can of worms for FedEx and the ISP model. This isn't over by a long shot.
http://www.insurancejournal.com/news/midwest/2015/07/17/375590.htm

It's definitely a decent challenge but I think eventually they are going to have to address the law. Is that what they want to happen? It is probably what needs to happen but what I think will happen instead of narrowing the language of the Kass statute is to broaden it to include as acceptable models like ISP. Why do I think that? No, not because I'm "pro Fedex".but because Kansas is not particularly progressive and the business money in politics (including FDX money) is going to weigh heavily on Kansas lawmakers. I'm not sure if that makes me a cynic or a realist.

 

[MAKAVELI]

It's definitely a decent challenge but I think eventually they are going to have to address the law. Is that what they want to happen? It is probably what needs to happen but what I think will happen instead of narrowing the language of the Kass statute is to broaden it to include as acceptable models like ISP. Why do I think that? No, not because I'm "pro Fedex".but because Kansas is not particularly progressive and the business money in politics (including FDX money) is going to weigh heavily on Kansas lawmakers. I'm not sure if that makes me a cynic or a realist.

I don't think it's going to be so simple as Fred throwing his $ around because of the statement I posted above from the DOL.

 

[bbsam]

I don't think it's going to be so simple as Fred throwing his $ around because of the statement I posted above from the DOL.

I hope you're right, but it's not just going to be Fred. It's going to be businesses far and wide.

 

[MAKAVELI]

I hope you're right, but it's not just going to be Fred. It's going to be businesses far and wide.

And business such as uber and lyft are finding out that it's not as simple as labeling its workers as contractors.

 

[vantexan]

I'm guessing what it will all come down to is the competitiveness of American business in the world marketplace. Anything that will save money, and shipping costs are a major expenditure, will influence the courts' decisions. The FedEx ISP model seems to tick off enough boxes to satisfy the courts. Most court settlements these days are to pay for past overreach by FedEx. We're seeing settlements now for suits that have been in the courts for many years but no longer apply to today's market.

 

[bbsam]

And business such as uber and lyft are finding out that it's not as simple as labeling its workers as contractors.

http://www.rollingstone.com/politic...w-far-right-fanatics-hijacked-kansas-20130612

Just remember exactly what Kansas politics is all about before you bet the house against the fanatical capitalists.

 

[bbsam]

And business such as uber and lyft are finding out that it's not as simple as labeling its workers as contractors.

And ISP is far different than uber and lyft.

 

[UpstateNYUPSer(Ret)]

And ISP is far different than uber and lyft.

Is there any chance that any of the states that took Ground to court over the IC model would/could it again over the ISP?

 

[bbsam]

Is there any chance that any of the states that took Ground to court over the IC model would/could it again over the ISP?

I doubt it. I think FedEx had to submit it's ISP structure to those states for preliminary review before enactment. Now how ISP is in actuality compared to the stated plan could come under court review but would require another set of plaintiffs.

 

[It will be fine]

And business such as uber and lyft are finding out that it's not as simple as labeling its workers as contractors.

You should read the actual interpretation from the DOL. The ISP model satisfies most of the questions raised in it. Enough so the classification of independent contractor is the correct one. I know it's 15 pages and you really have no idea how we operate our businesses, but you'll be better informed than by just reading biased articles.

 

[MAKAVELI]

You should read the actual interpretation from the DOL. The ISP model satisfies most of the questions raised in it. Enough so the classification of independent contractor is the correct one. I know it's 15 pages and you really have no idea how we operate our businesses, but you'll be better informed than by just reading biased articles.

And that's your biased opinion.

 

[Cactus]

You should read the actual interpretation from the DOL. The ISP model satisfies most of the questions raised in it. Enough so the classification of independent contractor is the correct one. I know it's 15 pages and you really have no idea how Fred operates our businesses, but you'll be better informed than by just reading biased articles.

Fixed it for 'ya.

 

[M I Indy]

I doubt it. I think FedEx had to submit it's ISP structure to those states for preliminary review before enactment. Now how ISP is in actuality compared to the stated plan could come under court review but would require another set of plaintiffs.

Name the state department Ex would submit the structure to? Then call that state department and inquire if it was submitted. Read, do a little homework, sheesh. ISP as I said before will ruin contractors before Ex, that is how it is set up, by your boss. ISP will have to deal with union efforts, worker issues, rising costs. I know you aren't big enough for union efforts....yet. Wait until only three or four of you own the terminal (one being just like Sweet Lou in Md), then you will show up on the radar, bigger may not be better for you. Your fellow ISP and their attitude could very well ruin your business. When the big ISP (still small potatoes in real world) has to account for constant legal retention into the structure, profits will be much smaller. Your customer (Ex) will just want to know if you are going to make 99%, rest is your problem.

 

[bbsam]

Name the state department Ex would submit the structure to? Then call that state department and inquire if it was submitted. Read, do a little homework, sheesh. ISP as I said before will ruin contractors before Ex, that is how it is set up, by your boss. ISP will have to deal with union efforts, worker issues, rising costs. I know you aren't big enough for union efforts....yet. Wait until only three or four of you own the terminal (one being just like Sweet Lou in Md), then you will show up on the radar, bigger may not be better for you. Your fellow ISP and their attitude could very well ruin your business. When the big ISP (still small potatoes in real world) has to account for constant legal retention into the structure, profits will be much smaller. Your customer (Ex) will just want to know if you are going to make 99%, rest is your problem.

I'd day the court issuing the ruling but that's just going off history when they had to modify for the IRS.

What is your problem anyway? If FDX ruins rhe ISP, they ruin their own "golden goose" along with it. So what? Why do you care?

 

[bbsam]

Name the state department Ex would submit the structure to? Then call that state department and inquire if it was submitted. Read, do a little homework, sheesh. ISP as I said before will ruin contractors before Ex, that is how it is set up, by your boss. ISP will have to deal with union efforts, worker issues, rising costs. I know you aren't big enough for union efforts....yet. Wait until only three or four of you own the terminal (one being just like Sweet Lou in Md), then you will show up on the radar, bigger may not be better for you. Your fellow ISP and their attitude could very well ruin your business. When the big ISP (still small potatoes in real world) has to account for constant legal retention into the structure, profits will be much smaller. Your customer (Ex) will just want to know if you are going to make 99%, rest is your problem.

And I'll never be big enough for union efforts because I'll sell off half my business. And what good will it do any group of drivers to unionize if it drives that owner out and no other owner will pick them up? And again why do you care?

 

[bbsam]

Name the state department Ex would submit the structure to? Then call that state department and inquire if it was submitted. Read, do a little homework, sheesh. ISP as I said before will ruin contractors before Ex, that is how it is set up, by your boss. ISP will have to deal with union efforts, worker issues, rising costs. I know you aren't big enough for union efforts....yet. Wait until only three or four of you own the terminal (one being just like Sweet Lou in Md), then you will show up on the radar, bigger may not be better for you. Your fellow ISP and their attitude could very well ruin your business. When the big ISP (still small potatoes in real world) has to account for constant legal retention into the structure, profits will be much smaller. Your customer (Ex) will just want to know if you are going to make 99%, rest is your problem.

99%? Try 85%.